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Financial Planning / Tax Strategies
|Subject: Wash sales between taxable and tax-deferred acco||Date: 11/24/1999 12:57 PM|
|Author: ptsurmr||Number: 21679 of 122503|
This question concerns "Wash" sales of stocks between taxable and tax-deferred accounts:
1) Jan 15th, 1999: In a taxable brokerage account, I purchase 100 shares of XYZ for $2 per share (total = $200)
2) Dec 1st, 1999: I sell the 100 shares of XYZ purchased in step (1) above for a loss, say at $1 per share (loss = $100).
3) Dec 1st, 1999: I purchase 100 shares of XYZ in a regular IRA for $1 per share.
Question 1: Since the loss occurred in a taxable account, can I use it to adjust the basis in the repurchased shares in the IRA?
Question 2: Can I take the $100 as a short term capital loss on my 1999 tax return?
Question 3: If I switch the accounts in the above example (make the original purchase in the IRA, then sell at a loss in the IRA, then immediately repurchase the shares in a taxable account), may I adjust his basis in the repurchased shares in the taxable account for the IRA loss?
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